Elon Musk's xAI Seeks $15 Billion Funding Round at $230 Billion Valuation

Musk's xAI raises $15 billion in latest funding round

Elon Musk announced his new company xAI, which he says has the goal to understand the true nature of the universe. Elon Musk's artificial intelligence company xAI has raised $15 billion from investors, sources familiar with the matter told CNBC's David Faber. The funding adds another $5 billion to the $10 billion round CNBC reported on in September, which valued the startup at $200 billion. Sources told CNBC that a lot of the money will fund graphic processing units that underpin large language models. Artificial intelligence startups have reached sky high valuations in recent months as they raise massive amounts of capital to power seemingly endless demand for foundational models.

Elon Musk's xAI could soon be worth more than $200 billion

Elon Musk's artificial intelligence company xAI is reportedly nearing a fundraising deal that would more than double its valuation to $230 billion. The company, which makes the Grok AI chatbot, is in advanced talks to raise $15 billion in new equity, The Wall Street Journal reports. The new valuation would represent more than twice the $113 billion xAI disclosed when it bought Musk's social media platform X in March. A raise of this size would mark another significant step in the AI funding race that has swept the financial world this year. Competitors including OpenAI have raised vast sums to build new infrastructure and improve their chatbots. OpenAI closed a $6.6 billion share sale valuing it at $500 billion in October. Also this week, Anthropic got a $5 billion investment from Microsoft and $10 billion from Nvidia that pushed its valuation up to about $350 billion. The trend has fueled concerns that tech company valuations are becoming overinflated, with leaders including Google chief executive Sundar Pichai drawing comparisons with the dot-com bubble around the turn of the century, which eventually burst. Musk has been vocal in suggesting that Tesla, which he also leads, invest in his AI firm. But at Tesla's recent shareholder meeting, shareholders were not so sure. A proxy vote on the issue did not bring enough votes in favor of such a measure for Tesla to inject cash into xAI. Grok has attracted widespread backlash for generating false content, anti-semitic statements and other hate speech. It recently launched a website called Grokipedia, which is supposed to rival Wikipedia. Previously, xAI raised $5 billion in equity plus $5 billion in debt in June to build out a data centre in Tennessee. Musk's SpaceX reportedly contributed $2 billion to that round. The terms of the latest fundraise were revealed to investors on Tuesday, The Wall Street Journal reported. Musk posted on X saying "false" in response to a similar CNBC report on a fundraise by xAI last week. Separately, Musk was at a dinner with President Donald Trump at the White House on Tuesday, as part of a visit by Saudi Crown Prince Mohammed bin Salman. His appearance has led to speculation that a bitter feud between Musk and Trump could be thawing. xAI didn't immediately respond to a request for comment.

xAI talks to investors about raising 15 billion at a 230 billion valuation

Elon Musk's xAI is in advanced talks to raise $15 billion in equity at a $230 billion valuation, more than doubling its worth since a March merger with social media platform X, as outlined by Musk's wealth manager Jared Birchall to investors on Tuesday night. The Wall Street Journal reported on these negotiations, which position the two-year-old artificial intelligence startup among the world's most valuable private companies. The $230 billion figure remains unspecified as either pre-money or post-money valuation. In March, xAI disclosed a $113 billion valuation during its all-stock merger with X, marking a rapid ascent for the venture founded by Musk. Forbes reviewed a recording of an investor pitch where Jonathan Shulkin from Valor Equity Partners stated that xAI is rapidly increasing revenue and is expected to become cash flow positive in approximately two and a half to three years, while maintaining $10 billion in cash reserves. This projected timeline aligns xAI's financial outlook with that of Anthropic, which anticipates reaching cash-flow positivity by 2028. In comparison, OpenAI projects positive cash flow no earlier than 2030, even as it generates $13 billion in annual revenue this year. A substantial portion of the proposed $15 billion raise targets xAI's infrastructure expansion. This includes the Colossus supercomputer located in Memphis, Tennessee, which currently operates with more than 200,000 graphics processing units and plans to scale up to 1 million GPUs. Such build-outs support the computational demands of advanced AI development, enabling training and deployment of sophisticated models. Earlier this year, xAI announced the launch of its Grok 4.1 AI chatbot. This model achieved top rankings in industry benchmarks for emotional intelligence and creative writing, demonstrating advancements in generating nuanced responses and original content. These capabilities build on xAI's focus on developing AI systems that integrate reasoning with human-like expressiveness. In parallel with the equity raise, Valor Equity Partners is seeking an additional $15 to $20 billion through a special purpose vehicle. This entity would purchase Nvidia chips and lease them directly to xAI, optimizing access to essential hardware. Nvidia has already committed $2 billion to this arrangement. Shulkin described the structure as a market innovation that lowers xAI's capital costs to below the 40 to 50 percent typically associated with traditional equity financing, providing a more efficient funding mechanism for hardware acquisition. This month, Tesla shareholders approved a proposal permitting the electric vehicle manufacturer to invest in xAI, although a notable number of shareholders chose to abstain from the vote. This decision reflects ongoing integration between Musk's companies. Musk's business interests encompass Tesla, SpaceX, X, and xAI, forming an interconnected network. Supporters express enthusiasm for these synergies, while critics raise concerns regarding potential conflicts of interest across the ventures.

Musk's xAI in advanced talks to raise $15 billion, lifting valuation to $230 billion: WSJ - The Economic Times

xAI, Elon Musk's AI firm, is reportedly close to securing $15 billion in new funding at a $230 billion valuation, according to the Wall Street Journal. Details were shared with investors by Musk's adviser Jared Birchall, according to the report.Elon Musk's artificial-intelligence company, xAI, is in advanced talks to raise $15 billion in new equity at a $230 billion valuation, the Wall Street Journal reported on Tuesday. The terms of the new fundraising were disclosed to investors by Musk's wealth manager, Jared Birchall, on Tuesday night, the report said. It could not be determined whether the expected new valuation Birchall shared with investors was pre- or post-money, the report added. XAI, in what seemed like an automated reply, said "Legacy Media Lies" in response to a Reuters request for comment. Reuters could not immediately verify the report. Jared Birchall could not be immediately reached. The new valuation would more than double xAI's $113 billion figure disclosed after merging with Musk's social-media platform X in March. Musk last week called a CNBC report "false" after it reported that xAI was raising $15 billion in a series E funding round that valued the AI startup at $200 billion.

Elon Musk Chases $15 Billion Funding Round For xAI At Whopping $230 Billion Valuation -- More Than Double Its Worth After X Acquisition

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Elon Musk's artificial-intelligence company, xAI, is in advanced talks to raise $15 billion in new equity at a $230 billion valuation, according to a report published late Tuesday. Valuation More Than Doubles The terms of the new fundraising were disclosed to investors by Musk's wealth manager, Jared Birchall, on Tuesday night, the Wall Street Journal reported, citing people familiar with the plans. xAI, launched in July 2023 as a rival to OpenAI, did not immediately respond to Benzinga's request for comment. It couldn't be determined whether the expected new valuation Birchall shared with investors was premoney or postmoney, according to the report. The new valuation would represent a more than double increase from the $113 billion xAI disclosed after acquiring Musk's social-media site, X, in March. WSJ's report comes days after a similar fundraising report by CNBC last week, which Musk later called "False" in a post on X. Musk has also previously floated the idea of using Tesla to back xAI. xAI's Grok competes directly with OpenAI's ChatGPT, Google's Gemini, and other leading AI bots. The startup recently lost several senior executives, including X CEO Linda Yaccarino and the finance chiefs at X and xAI. See also: Elon Musk Says Tesla, xAI Are 'Trending Towards Convergence' In Some Ways AI Investments Boom As Investors Weigh Risks Many AI startups, including xAI, have reached sky-high valuations in recent months, as they raise money to invest billions in a bid to build infrastructure to help train and refine AI models. A report on Monday said Data analytics firm Databricks is in talks to raise capital at a valuation of more than $130 billion, which is about 30% higher than its last financing round two months ago. xAI is also investing heavily in infrastructure, including property in Memphis, Tennessee, for its planned Colossus supercomputer. Meanwhile, investor appetite for AI companies remains robust despite growing concerns of an AI bubble, fueled by soaring valuations and aggressive spending plans. READ NEXT: Trump Approval Crashes To 38% As Americans Rage Over Soaring Prices And Epstein Files, Reuters Poll Shows GOP Support Cracking Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Elon Musk's xAI raises $15 billion in series E round: Report

Elon Musk's xAI has raised $15 billion in a series E funding round. The AI startup has been ramping up its data center capacity to train more advanced models, as it looks to compete more effectively with OpenAI's ChatGPT and Anthropic's Claude. Billionaire Elon Musk's xAI has raised $15 billion in a series E funding round, CNBC reported on Thursday, citing sources. The Tesla chief in September said the company was not raising any capital after CNBC reported that xAI was raising $10 billion at a post-money valuation of $200 billion. xAI, in what seemed like an automated reply, said "Legacy Media Lies" in response to a Reuters request for comment on the raise. The AI startup has been ramping up its data center capacity to train more advanced models, as it looks to compete more effectively with OpenAI's ChatGPT and Anthropic's Claude.

xAI Targets $230 Billion Valuation With New Funding | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. That's according to a report Wednesday (Nov. 19) by the Wall Street Journal (WSJ), citing sources familiar with the Elon Musk-run artificial intelligence (AI) company's plans. The report notes that this new valuation would mark a massive jump from the $113 billion xAI revealed after acquiring Musk's X social media platform earlier this year. Sources told the WSJ that the terms of the new funding were shared with investors by Musk's wealth manager, Jared Birchall, on Tuesday (Nov. 18) evening. The news comes days after a similar report from CNBC about a planned $15 billion funding round. Musk had called that report "false" in a post on X. The multibillionaire offered the same response to a report in September that xAi had raised $10 billion, valuing it at $200 billion. PYMNTS reached out to xAi for comment on the WSJ report, with the company offering an almost immediate three-word reply: "Legacy Media Lies." The WSJ also noted that xAI had in June raised $5 billion in equity and $5 billion in debt to help fund the development of its Colossus data center in Memphis, with Musk's SpaceX rocket company contributing $2 billion to that round. Musk has also supported the notion of his car company Tesla investing in xAI, the WSJ report said, though shareholders had a mixed response to that proposal at a recent meeting. Before the meeting, Tesla Chair Robyn Denholm told the WSJ she questioned the logic of this investment and said the board hadn't yet performed due diligence needed to proceed. Last month, Nvidia CEO Jensen Huang said his company would invest in xAI, telling CNBC he was "super excited" about the funding opportunity and that he wished he could give Musk even more money. An earlier Bloomberg News report had said the company would invest $2 billion. "Almost everything that Elon is part of, you really want to be part of as well," Huang said. Musk also recently introduced Grokipedia, an AI-powered version of Wikipedia designed to "purge out" what Musk called "the propaganda" on Wikipedia, according to a post on X. It gets its name from Grok, the AI chatbot behind xAI. The CEO had previously attacked Wikipedia as "woke" and blasted it for using media outlets like The New York Times and NPR as sources in many of its entries.

Elon Musk's xAI in talks to raise $15B at $230B valuation: report

Elon Musk's firm, xAI, is reportedly in advanced talks to raise $15 billion in new equity - after the billionaire last week slammed a CNBC report about the funding round as "false." The deal would hike xAI's valuation to $230 billion, people familiar with the plans told the Wall Street Journal. That's a strong jump from the $113 billion valuation that xAI disclosed after it acquired Musk's social media platform X, formerly known as Twitter, in March. Asked for comment, xAI told The Post, "Legacy Media Lies," in what appeared to be an automated response. Musk's wealth manager, Jared Birchall, shared the new fundraising terms with investors on Tuesday night, sources told the Journal. The outlet reported that it could not be determined whether the new valuation reflects xAI's worth before or after the $15 billion fundraising round. Just last week, Musk blasted a CNBC report about the funding round as "false." The outlet claimed xAI had added $5 billion to a $10 billion round it had reported on two months ago, citing anonymous sources. That $10 billion round valued the company at $200 billion, CNBC reported in September. Musk previously called that report wrong, too. Musk's AI startup, which was founded in July 2023, has raised billions of dollars as it races to build out massive data centers to compete with rivals like OpenAI. In June, the firm raised $5 billion in equity and $5 billion in debt to help build out its planned Colossus supercomputer in Memphis, Tenn. Musk's space company, SpaceX, invested $2 billion as part of that funding round, according to the Journal. It has sparked some controversies along the way, with environmentalists blasting xAI's use of natural gas-burning turbines, arguing they worsen the surrounding area's air quality. Some critics have also accused his Grok chatbot and Grokipedia - Musk's AI-powered alternative to Wikipedia - of bias, though others have praised the site for taking a more neutral stance than lefty Wikipedia. Lately, Musk has been focused on integrating his many business ventures, pushing for Tesla to invest in xAI. At a recent shareholder meeting, Tesla investors failed to approve a measure to allow the electric-vehicle maker to invest in xAI. It is now up to the board to decide whether Tesla should back xAI. Some newer Tesla models feature xAI's Grok chatbot in their "infotainment" systems. The AI firm, meanwhile, has purchased tens of millions of dollars worth of Tesla's battery energy storage systems for use in its data centers. Tesla investors recently passed Musk's $1 trillion pay package after he threatened to leave if he didn't get it. It's the largest pay plan on record and could make Musk, already the world's richest person, the first trillionaire - though he will have to hit a series of ambitious goals over the next decade to earn the total sum.

Elon Musk Refutes Claims of $15 Billion Raise as xAI Expands AI Infrastructure

Elon Musk Denies $15B xAI Raise as Company Deals With GPU Demands and Memphis Data Center Issues xAI founder Elon Musk has denied a report that claimed the artificial intelligence startup raised $15 billion in new capital. He responded on X, the social media platform he owns, and called the CNBC story "false" without giving extra details about the company's financing plans. The report said xAI had added $5 billion to an earlier $10 billion funding round that valued the firm at about $200 billion. CNBC cited unnamed sources who described the transaction as one of the largest private raises in the AI sector. Musk also disputed CNBC's earlier story about the $10 billion round.

Elon Musk's xAI's $230 Bn Ambition Recasts AI as Infrastructure, Not Software | Investing.com UK

xAI's attempt to raise $15 billion at a $230 billion valuation signals a new phase in AI capital formation, where infrastructure economics and strategic corporate alliances are superseding traditional startup metrics. The move directly affects tech equities, particularly in the AI ecosystem spanning Tesla (NASDAQ:TSLA), SpaceX, and index heavyweights in the Nasdaq and S&P 500. The immediate risk lies in valuation sustainability and shareholder dilution, while the opportunity centers on long-term AI infrastructure dominance. The valuation jump from $113 billion in March to a potential $230 billion illustrates the escalating monetization of AI infrastructure ambitions rather than current earnings capacity. xAI's funding strategy mirrors a broader shift in AI finance where capital is directed not toward software development alone, but toward data center construction, compute scaling, and model training capacity. The June financing round, where $5 billion in equity and $5 billion in debt was raised specifically for the Colossus data center in Memphis, confirmed that xAI is positioning itself as a physical infrastructure company rather than a purely algorithmic firm. Musk is now leveraging strategic synergies, aligning xAI not only with Tesla's AI and autonomy capabilities, but also with SpaceX's space-based connectivity infrastructure. SpaceX has already provided $2 billion in financing, setting a precedent for cross-company capital integration. This alignment matters because it redefines competitive positioning against OpenAI and Alphabet, shifting from software to vertically integrated AI ecosystems spanning compute, distribution, cloud, and embedded AI applications. Investor tension now centers on whether Tesla should invest in xAI. Robyn Denholm, Tesla's Chair, publicly questioned the strategic rationale, citing the absence of board due diligence. This reflects shareholder concern that Tesla's balance sheet, already strained by capex for robotics and autonomous-driving, could be further pressured. However, the opposing argument sees Tesla's AI investment not as dilution, but as supply-chain integration, positioning Tesla to secure long-term AI compute capacity at a time when AI demand is outpacing available infrastructure. Leadership turbulence adds another layer. The departure of key executives from both X and xAI, including Linda Yaccarino and chief financial officers from both entities, signals operational instability and possible governance risks. However, these exits may reflect a transition from corporate restructuring to infrastructure execution, shifting from organizational building to capital deployment. The funding drive reverberates across AI-linked equities and benchmark indices. Tesla's decision on whether to allocate capital to xAI could influence its valuation trajectory, as investors weigh potential long-term AI upside against short-term profitability constraints. In the broader market, the Nasdaq remains sensitive to AI capital expenditure trends, with investor flows increasingly favoring companies with secured access to GPU capacity, proprietary data centers, and cloud monetization pathways. Companies like Alphabet, Microsoft, and Meta dominate that theme, reinforcing hardware-to-software AI convergence. Hedge fund positioning indicates growing differentiation between AI infrastructure leaders and speculative AI narratives. Capital has increasingly favored firms with physical AI assets -- data centers, chip contracts, and network infrastructure -- rather than those reliant solely on model licensing or chatbots. xAI's move to fund Colossus places it in the former category, making it a potential peer to AWS, Google Cloud, and Azure rather than just ChatGPT competitors. Over the next six months, three developments will determine how markets price xAI and related AI equities. A key short-term event is Tesla board guidance on potential participation in the $15 billion capital raise, which could influence both Tesla's ownership structure and xAI's funding credibility. Medium-term, any disclosure on progress of the Colossus facility will serve as a proxy for xAI's operational viability. Longer-term, clarity on regulatory treatment of cross-company AI investment in Musk-controlled entities may affect both governance perception and institutional investor appetite. Base case: xAI secures funding with mixed participation from Musk-affiliated firms, expanding its infrastructure footprint and reinforcing AI asset allocation in the Nasdaq. Alternative scenario: governance concerns or board resistance slow capital formation, leading to valuation markdowns and a broader re-assessment of AI infrastructure risk premiums. For investors, the tradeoff is clear. Exposure to AI infrastructure -- rather than only AI software -- may offer deeper long-term value capture. However, governance and funding execution risks remain high. A strategy favoring diversified AI infrastructure holdings, while monitoring Tesla's strategic decision on xAI, could offer asymmetric upside. The primary risk to this thesis is a breakdown in funding execution or regulatory pushback on cross-ownership structures.

Elon Musk blasts CNBC report that xAI raised $15B as 'false'

Elon Musk blasted a CNBC report that claimed his firm, xAI, has raised $15 billion as "false." The news outlet reported that xAI has added $5 billion to a $10 billion round it reported on two months ago, citing anonymous sources. That $10 billion round valued the company at $200 billion, CNBC stated in September. Musk previously called that report wrong, too. Asked for comment, xAI told the The Post, "Legacy Media Lies," an apparent automated reply. CNBC did not immediately respond to The Post's request for comment. Sources told the news outlet the company is planning to use the fresh funding to make graphic processing units for advanced large language models. Tech giants have been spending big on AI infrastructure - even as some investors are becoming weary that AI stocks are being overvalued -- a view that appeared to spark a massive sell-off last week. Musk's AI startup, which was founded in July 2023, has been rushing to build out massive data centers to compete with rivals like OpenAI. In particular, xAI has focused on buying up land in Memphis, Tenn., to build out its planned Colossus supercomputer, sparking some controversies along the way. Environmentalists have decried the use of natural gas-burning turbines, arguing they worsen the surrounding area's air quality. Also, some critics have accused his Grok chatbot and Grokipedia - an AI-powered alternative to Wikipedia - of bias, though others have praised the site for taking a more neutral stance than lefty Wikipedia. Lately, Musk has been focused on integrating his many business ventures. In March, xAI acquired Musk's social media company X, formerly known as Twitter, in a deal that valued the platform at $33 billion. Some newer Tesla models feature xAI's Grok chatbot in their "infotainment" systems, while xAI has purchased tens of millions of dollars worth of Tesla's battery energy storage systems for use in its data centers. During the annual shareholder meeting last week, Tesla investors approved Musk's $1 trillion pay package after he threatened to leave if he didn't get it. The eye-popping pay plan is the largest on record and could make Musk the world's first trillionaire. He will have to hit a series of ambitious performance targets over the next decade to receive the total sum. Tesla investors did not, however, approve a measure to allow the electric-vehicle maker to invest in xAI.

Musk's xAI said to raise $15 billion in latest funding round By Investing.com

Investing.com -- Elon Musk's artificial intelligence company xAI has secured $15 billion in funding from investors, according to CNBC David Faber's report on Thursday, citing three people familiar with the matter. The latest funding represents an increase of $5 billion from the previously reported $10 billion round in September, which valued the AI startup at $200 billion. The report indicated that a substantial portion of the newly raised capital will be allocated toward purchasing graphic processing units (GPUs), which are essential components for powering large language models that form the foundation of advanced AI systems. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Elon Musk's company xAI raises $15bn, reaching a valuation of $200bn

The artificial intelligence company xAI, founded by Elon Musk, has raised an additional $15bn from investors, according to reports by CNBC. This fundraising, which is in addition to the $10bn mentioned in September, now values the company at $200bn. A significant portion of this funding will be used to purchase graphics processors, which are essential for training large language models. This new round of funding places xAI amongst the most highly capitalized players in the sector, at a time when the race for AI continues to attract massive funding. Anthropic raised $13bn in September, while OpenAI was valued at $500bn after a sale of shares in October. The company led by Sam Altman is also reportedly preparing for an IPO, which could raise its valuation to $1 trillion, Reuters says. At the same time, the link between xAI and Tesla is attracting attention. The automaker's shareholders recently approved Elon Musk's compensation package, estimated at nearly $1 trillion, as well as a resolution authorizing Tesla's investments in xAI. Although the vote's abstention rate was high, Tesla's legal department is currently reviewing the implications of this approval. This decision could pave the way for closer integration between Musk's AI activities and his other technology companies.